1. Based on your analysis of Year-One Financial Data from your Week 1 readings, analyze the accounting treatment of Start-Up Costs for the company.
2. Individually, write a 2-3 page, double-spaced paper using the I.R.A.C. method as follows:
   1. Issue: Succinctly state the accounting issue.
   2. Rule: Using your research of authoritative accounting sources, briefly identify and explain the authoritative rule.
   3. Analysis: Apply the facts of the case study, including comments from the CFO, to the rule and provide an in-depth analysis based on the issue. Your analysis should also include a supporting schedule, calculations, and/or correcting journal entries. Additional discussion should focus on professional skepticism and validity of evidence as it relates to "Reflective Judgment Stages Chart"

Here is the information regarding start up costs.

HYDROMAINT, INC. BALANCE SHEET DECEMBER 31, 20X1 ASSETS CURRENT ASSETS Cash $ 2,020 Accounts receivable 72,000 Total Current Assets 74,020 PROPERTY, PLANT, AND EQUIPMENT Equipment, net of accumulated depreciation of $7,000 28,000 Total Property, Plant, and Equipment 28,000 OTHER ASSETS Deferred start-up costs 36,000 License agreement 20,000 Total Other Assets 56,000 TOTAL ASSETS $158,020

And now Journal Entries

14) 217 start-up costs 45,000 101 cash 45,000 Recorded payment of start-up costs of training new employees.

18) 711 amort exp-start-up 9,000 217 start-up cost 9,000

Recorded amortization of start-up costs.